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Getting the facts straight on Individualized Education Accounts

Tennessee lawmakers brought hope to thousands of children with special needs by passing SB27/HB138 and creating Individualized Education Accounts. With an account, the state deposits a child’s portion of the school funding formula into a private bank account that parents use to buy educational products and services for their child. These accounts are already available to students in Arizona, Florida, and Mississippi, and existing research demonstrates that participating families are highly satisfied with the new accounts and children have more access to flexible learning opportunities. Here are the facts about Tennessee’s new options for children with autism, that may be deaf or blind, or who have other cognitive or physical needs:

1. Quality educational choices. Individualized Education Accounts provide students with special needs the chance to attend a school that specializes in helping children that struggle in a traditional classroom. It also allows their parents to find other services such as personal tutors or educational therapists. While some have labeled these accounts as vouchers, they are different in that they give families access to more educational opportunities than vouchers might.

2. Constitutional. In 2014, the Arizona Supreme Court ruled that an account system similar to Tennessee’s was constitutional. The court upheld an opinion from Arizona Appeals Court Judge Jon W. Thompson, in which he wrote, “The specified object of the [accounts] is the beneficiary families, not private or sectarian schools. Parents can use the funds deposited in the [account] to customize an education that meets their children’s unique educational needs.

3. Transparent. The accounts protect against financial fraud and require that parents measure student progress. When families receive an account for their student, the state deposits funds onto the debit card that accompanies the account on a quarterly basis. If the Tennessee Department of Education finds that a parent has intentionally or unintentionally misused the card, the department and state board of education must develop rules to resolve the discrepancy that may include withholding the next quarterly deposit, as is the current practice in Arizona. Parents must also keep receipts proving that their purchases are for qualifying services. Arizona and Florida have developed rules for the accounts in those states. The account handbook for Arizona is available here, and Florida’s handbook is here. In addition, students using an account in Tennessee must take a nationally norm referenced test annually. Parents will have ready access to information about how well their children are learning.

4. Cost savings. According to the U.S. Department of Education, Tennessee taxpayers spend approximately $9,000 per student in traditional schools. However, students using an Individualized Education Account will be funded at $6,500. Beacon Center research finds that each account could save local school districts an average $1,000, even after fixed costs are considered. Individualized Education Accounts hold tremendous promise for children across Tennessee. Research from Arizona and Florida provides evidence that families take advantage of the option to customize their child’s education and that families are highly satisfied with their accounts. Tennessee families can look forward to the same success for their children.